TEXAS – If you’ve shopped for a retail electric provider (REP) lately, you already know it can take time to find a low rate from a company you trust.
Now, tens of thousands of Texans are reporting a new frustration: they’re being moved—sometimes mid-contract—from the electric provider they chose to a different company, without asking for the switch.
I know because it happened to me.
“I got a letter saying I had a new electric provider.”
In November, I received a letter from Discount Power telling me it was now my retail electric provider, even though I was in the middle of a contract with True Power.
At first, I assumed True Power must be going out of business. It wasn’t.
Instead, I learned True Power had sold a “book of customers,” including me, to another company.
And consumer advocates say it’s happening more often.
In March, NRG purchased a book of customers from Budget Power. SFE Energy also purchased customers from True Power.
We asked why smaller electric companies would give up customers they worked to win.
“They had good rates, good plans, good customer base that became attractive for the bigger guys to purchase to make their market share bigger,” said Chris Coulter, owner of Texas Power Agents, an electricity broker that helps customers compare plans.
Coulter said even some of his clients have been switched mid-contract.
“It’s a hassle. You get a bill from somebody else. It’s confusing,” he said.
Is it legal to switch customers without consent?
We checked with the Public Utility Commission of Texas (PUCT).
PUCT says these transfers can be legal as long as the electric provider:
- Notifies customers in writing at least 14 days in advance of any change, and
- Gives customers that same 14-day window to switch providers with no penalty
Even when your rate and contract term stay the same, the new provider may have different billing policies.
For example, when SFE purchased customers from True Power, some customers received a notice that they would be charged a $3.25 monthly “convenience fee” unless they enrolled in auto pay.
Customers can switch providers within 14 days—but for many Texans, that means starting over on a process they already spent hours researching.
Here are steps to take if you receive a notice that your REP is changing:
- Read the letter carefully and note the effective date.
- Verify your contract terms (rate, contract length, and any credits).
- Look for new fees or requirements (paper billing, convenience fees, auto pay rules, etc.).
- Shop and switch within the 14-day window if you don’t want the new provider.
Both SFE Energy and NRG told 2 Investigates they honor the electric rate and the length of the contract customers originally signed.
But if you’re switched and simply don’t want the new company—or want to switch for any reason—you can typically do so without an early termination penalty within 14 days.
When to file a complaint
If you weren’t given the required notice, weren’t given time to switch, or you’re charged an improper fee for switching, you should file a complaint with the Public Utility Commission.
An NRG spokesperson told 2 Investigates customer transfers can help provide stability—particularly if a smaller provider is struggling to provide energy at the agreed price.
NRG said offloading customers to a larger provider can sometimes help the original company stay in business.